Yugoslav Daily Survey, 97-12-01

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From: Yugoslavia <http://www.yugoslavia.com>

Yugoslav Daily Survey

CONTENTS

[01] RS GOVERNMENT LETTER TO FROWICK

[02] YUGOSLAV ECONOMIC RECOVERY

[03] PRIME MINISTER KONTIC TO VISIT RUSSIA

[04] YUGOSLAVIA, ALGERIA AGREE TO DEVELOP ECONOMIC COOPERATION

[05] SERBIAN-ALBANIAN COOPERATION IN THE PROTECTION OF CULTURAL MONUMENTS

[06] YUGOSLAVIA SETS MODEL FOR SECURING EXERCISING OF ETHNIC RUTHENIANS' RIGHTS

[07] REPUBLIKA SRPSKA PROTESTS WITH OSCE ABOUT ELECTION RULES BREACH

[08] REHN APPOINTED SPECIAL U.N. ENVOY IN BOSNIA

[09] MINISTER RADOJEVIC LEAVES FOR ISTANBUL

[10] YUGOSLAVIA, CROATIAN SERBS REVIEW APPLICATION OF ACCORD WITH CROATIA

[11] WESTENDORP AGAINST INTERNATIONAL PROTECTORATE IN BOSNIA

[12] PROSPECTS FOR DEVELOPING COOPERATION WITH ALGERIA

[13] MARJANOVIC OF SERBIA: TWO-DIGIT GDP GROWTH IN 1998

[14] YUGOSLAV GOVERNMENT FAVOURS FIXED, REAL EXCHANGE RATE OF DINAR

[15] TWO TERRORIST ATTACKS AGAINST POLICE

[01] RS GOVERNMENT LETTER TO FROWICK

Tanjug, 1997-11-27

Republika Srpska (RS) Government has sent a letter to OSCE Mission h ead in Bosnia and Herzegovina Robert Frowick demanding that he guarantees there would be no tampering of legislative elections results, due to be announced December 10. The letter points to the harmful and tendentious statement of the international community's High Representative for Bosnia and Herzegovia Karlos Westendorp, who congratulated the Serbian National Alliance of Biljana Pl avsic the winning of 20 seats in RS Parliament. Such statements are of concern for the Government and crea te doubts that election results will be tampered, while their respect should be guaranteed by OSCE, the l etter said.

[02] YUGOSLAV ECONOMIC RECOVERY

Tanjug, 1997-11-27

Yugoslav economy has been growing every year since this country bega n implementing its economic recovery programme in 1994. It is estimated that this country's gross domestic product will increase by 10% this year, the amplitude stands as first in Europe. Based on the latest statistics offered by Yugoslav relevant departments, compared with the same period of last y ear, in the first 9 months of this year industrial production increased by 9%, export of industrial products increased by 40%, income increased by 30%, while the inflation is only 2.9%. Yugoslavia once suf fered unprecedented economic difficulties due to the civil war in former Yugoslav republics and the in ternational sanctions, as well as nearly a million refugees. UN Security Council imposed economic sanctions against Yugoslavia in May 1992, and did not lift them until October 1996. The country is now still suffering external economic pressure and has still not been reintegrated into the UN and some other internatio nal political and economic organizations due to the insistence of some countries. Due to above reaso ns, Yugoslavia is unable to obtain loans from the World Bank. Thus, one of the major problems facing Yugoslavia on its road to full economic recovery is the shortage of funds, making normal functioning of enterprises very difficult. The Yugoslav Government has made great ef forts so as to solve the problem of the shortage of funds. Firstly, the Yugoslav Government has established the "Economic Rec overy and Development Fund", limiting the use of funds exclusively for productions, so that the use an d allocation of funds could be centrally controlled. The "Fund" is in charge of planning the usage of th e funds according to the enterprises' production results and export status. In this way the "Fund" can be utili zed to the maximum in the shortest possible time. Secondly, collecting as much funds as possible. For inst ance, the Yugoslav Government encouraged its citizens working overseas to remit money back to Yugoslavi a and to invest into a vigorous reconstruction of tourist facilities so as to develop tourism, etc. Thir dly, taking advantage of the country's geographical location as a bridge between East and West Europe, the Yugos lav Government has allocated more that 600 million DM towards the reconstruction of existing and const ruction of new communication routes, so that more goods may directly pass through the country instead of using round*about routes through other countries, thus increasing the national financial income. F urthermore, Yugoslavia has sold 49% of its Telecom stocks to Italian and Greek companies, with the presup position that this will not influence the country's basic interests, and most of the funds obtained h ave been used to encourage recovery of industrial production. So as to ensure that the funds will be effectively used and the loan repaid in time, the government has to strictly examine all loan applications, en terprises are not given a low*cost loan unless they have signed export contracts and are able to give guaran tees and provide collateral.Only with such measures did the Yugoslav industry achieve rapid recovery. Howe ver, the road to recovery is not smooth. As the shortage of funds still troubles its national economy the country's present economic level is only at half mark of what it used to be in 1989. So, in the fiel d of foreign trade, Yugoslavia has defined joining the WTO and EU, as well as efforts to normalize its relat ions with international financial and trade organizations, as its basic aim. In October of this year, the Yugos lav Government has conceived the 1998*2000 reform plan of its foreign trade system, thus the country has c reated conditions for speedy return to the world market, WTO and other important international financi al organizations.

[03] PRIME MINISTER KONTIC TO VISIT RUSSIA

Tanjug, 1997-11-27

The Yugoslav Government met in session on Thursday and determined th e platform for talks of Prime Minister Radoje Kontic with Russian Prime Minister Victor Chernomyr din in Moscow. The upcoming visit, the first official visit to the Russian Federation at this level since the proclamation of the Federal Republic of Yugoslavia, will take place from Dec 2-4 this year at the in vitation of the Russian Prime Minister. The visit will be a continuation of the political dialogue of the two countries on the most important issues of mutual interest. Talks between the two Prime Ministers will cov er matters concerning the further development of Yugoslav-Russian relations and cooperation, topical issues of the peace process in former Yugoslavia and more important questions regarding international relations of mutual interest, the Federal Secretariat of Information said. Special attention will be devoted to th e promotion of economic cooperation.

The talks which Kontic and Chernomyrdin will hold in Moscow, togethe r with their closest associates from the key economic-financial and other major departments, should stim ulate overall Yugoslav-Russian bilateral cooperation and make room for its further promotion and expansi on in various areas. During the visit, it is expected that the sides will sign an Agreement on state cred it, a Memorandum on the liberalization of mutual trade, an Agreement on military-technical cooper ation, and a three-year Programme on cultural-educational cooperation. It is also expected that the talks w ill give impetus to the coordination of several other interstate agreements between the two countries. In addition to the state delegation, a group of about 40 businessmen from major Yugoslav firms which cooperate with Russian companies will also visit Moscow. The top-level talks with a delegation of the Russian Federation are especially important for strengthening support and understanding in the international communit y about the need to return Yugoslavia to international organizations and institutions.

[04] YUGOSLAVIA, ALGERIA AGREE TO DEVELOP ECONOMIC COOPERATION

Tanjug, 1997-11-27

Yugoslav and Algerian businessmen have agreed to develop bilateral c ooperation and discussed the prospects for the construction of a hydro- power plant, roads and hous ing and the equipment of an airport in Algeria by Yugoslav companies. The projects were discussed dur ing a working visit of a Yugoslav state and business delegation headed by Minister of the Economy Rade Fili povic from November 23 to 26. The visit was described by Yugoslav businessmen as very important, as con tacts between the two countries had been broken off for several years. Conditions have now been laid for resuming economic cooperation in the interest of both countries, they said.

Minister Filipovic conveyed to the Algerian Prime Minister Ahmed Ouy ahlou a message from Yugoslav Prime Minister Radoje Kontic and their meeting focused on the fu ture development of political, economic and other ties. Pointing to the importance of good relations an d mutual understanding and to the successful bilateral cooperation in the past, especially as regards e conomy, Algerian Prime Minister accepted an invitation by Premier Kontic to visit Yugoslavia. Filipovi c was also received by Algerian Foreign Minister Ahmed Ataf and eight other ministers, including those in charge of land development, water resources and fisheries, finance, housing, trade and transports. The Yugoslav delegation was hosted by Minister Belayat, in charge of land development and road, airport and dam construction. As both Yugoslavia's and Algeria's economies are u ndergoing transition and ownership transformation, cooperation plans include joint investments in small and medium ventures for more successful activities at domestic and third markets. Draft Agreeme nts on the avoidance of double taxation and investment protection and incentives have been exchan ged in order to initiate negotiations. Joint Commissions should resume their activities and earlie r agreements should be reactivated or adapted to new conditions, efficient banking cooperation should be est ablished and air traffic resumed in order to improve communications, it was agreed during the talks. An Algerian state and business delegation is expected to visit Belgrade shortly to pursue the talks.

[05] SERBIAN-ALBANIAN COOPERATION IN THE PROTECTION OF CULTURAL MONUMENTS

Tanjug, 1997-11-27

A delegation of the Institute for the protection of Albanian cultura l monuments, visiting Serbia for the first time, and representatives of the Institute for the Protection o f Serbian Cultural Monuments have reached an agreement on the establishment of tighter cooperation in the p rotection of cultural monuments, it was said at a news conference on Thursday in the Institute. Cooperati on will be established next spring by the signing of an agreement, which involves joint work on scientific-r esearch work, conservation and restauration of monuments, exchange of methodology, documentation, expert s, publications and mutual popularisation of the cultural heritage. An agreement on future cooperat ion on the bilateral and regional level in the field of protection was reached by the director of the Alba nian Institute, Walter Stuhl, the head of the Institute's Department for the protection of Medieval monuments, G yerak Karaiskay, and the Director of the Serbian Institute, Mileta Milic. There are 1,300 cultural monumen ts in Albania under protection.

[06] YUGOSLAVIA SETS MODEL FOR SECURING EXERCISING OF ETHNIC RUTHENIANS' RIGHTS

Tanjug, 1997-11-27

Head of the ethnic Ruthenians' cultural society Mihajlo Varga said o n Thursday the ethnic Ruthenians' world society regarded Yugoslavia a model country for securin g the exercising of ethnic Ruthenians' rights. Varga said this had been concluded at a recent sympo sium on ethnic Ruthenians' status in central and southeast Europe, in Copenhagen, Denmark. The sympo sium was attended by representatives of ethnic Ruthenians from Yugoslavia, Slovakia, Austria, Ukraine, Hungary and Romania. Varga said the symposium had been a way of informing western Europe and t he United States about the status of ethnic Ruthenians, saying European and U.S. officials had also praised Yugoslavia for its good solutions to the ethnic Ruthenian issue. Visits by participants in the sy mposium to the German minority in Denmark and the Danish minority in Germany also contributed to the favour able assessment of the status of ethnic Ruthenians in Yugoslavia. Varga said the visits had confirmed that in the field of education, science, culture, information and publishing and other fields considered vital for the preservation of national identity, the Ruthenian minority in Yugoslavia was granted the same right s as minorities in Germany and Denmark.

[07] REPUBLIKA SRPSKA PROTESTS WITH OSCE ABOUT ELECTION RULES BREACH

Tanjug, 1997-11-27

A Republika Srpska Government delegation on Thursday protested with the OSCE about the breach of election rules in R.S. early parliamentary elections on Novembe r 22-23. The delegation, monitoring at the OSCE Vienna headquarters the OSCE activity in the elect ions, told Yugoslav reporters that it had called on Richard Elerkmann, Senior Deputy head of the OSCE M ission to Bosnia, to immediately exclude from the election process Tanya Sisler because of her not being familiar with the election rules and serious mistakes that could influence the outcome of t he election. Deputy OSCE Coordinator for absentee balloting Antonio Tsakiris, head of the team inc luding Sisler, conceded to Sisler not doing her job quite well but said she must be given an opportunity to learn how to do it.

Sisler, a U.S. diplomat, works with the Geneva-based migration forum 2E R.S. Assistant Foreign Minister Gordan Milinic and Assistant Justice Minister Dragan Podinic sai d the election process would not be considered regular if the OSCE did not comply with the Republika Srpsk a's request. Milinic and Podinic said the OSCE headquarters had received about 65,000 ballots, of which fi gure only 45,000 were accompanied by necessary documentation so that their categorisation was y et to be discussed.

The ballots that are in order are to be sent to Serb Sarajevo, they said adding that about 143,000 people sheltering abroad had the right to vote.

[08] REHN APPOINTED SPECIAL U.N. ENVOY IN BOSNIA

Tanjug, 1997-11-27

The U.N. Human Rights Commission's Special Rapporteur on former Yugoslavi a Elisabeth Rehn will become U.N. Secretary-General Kofi Annan's Special Representative and Coo rdinator of U.N. operations in Bosnia, a U.N. Spokesman said on Wednesday. Rehn, 62, will take up the post on January 16, 1998. She will be one of a dozen U.N. Special Envoys on hotspots througho ut the world, ranging from Cambodia, Afghanistan and Tajikistan to Western Sahara. Rehn, who acted as Finnish Defence Minister from 1990 to 1995, will replace Kai Eide of Norway who took up the post i n January 1997.

[09] MINISTER RADOJEVIC LEAVES FOR ISTANBUL

Tanjug, 1997-11-26

Federal Telecommunications Minister Dojcilo Radojevic left on Wednesday for Istanbul to take part in the second meeting of the post office and telecommunication ministers of the Balkans, the Federal Information Secretariat has said.

The meeting, held on Nov. 27-28, will discuss Balkan cooperation in the sphere of post offics and telecommunications.

The Ministers will also discuss liberalization and privatization in this sphere, computer technologies and the coordination of national laws and their harmonization with EU regulations, the statement said.

[10] YUGOSLAVIA, CROATIAN SERBS REVIEW APPLICATION OF ACCORD WITH CROATIA

Tanjug, 1997-11-26

A delegation of the Joint Council of Municipalities of the Serb Region of East Slavonia, Baranya and West Srem held talks at the Yugoslav Foreign Ministry on Wednesday to discuss the implementation of a Yugoslav-Croatian Border Accord.

The Accord, which came into force on Nov. 1, 1997, regulates traffic in the border area between Croatia and the Federal Republic of Yugoslavia, where the Region is wedged in.

A Government statement said it was noted in the meeting that the implementation of the Accord had got off to a good start and was expected to continue in the same way. The obligations undertaken by Yugoslavia and Croatia in order to deal efficaciously with all problems that might appear in the course of the implementation of the Accord, so as to attain the set objectives in full, were pointed out in this context.

The Yugoslav side affirmed its readiness to help implement the letter and spirit of the Accord in the best interests of both countries and their overall bilateral relations.

Full support was given to the Joint Council of Municipalities for creating the best possible conditions in the Region, in order to attain the interests and needs of the Region's people in the spirit of the Accord.

[11] WESTENDORP AGAINST INTERNATIONAL PROTECTORATE IN BOSNIA

Tanjug, 1997-11-26

The international community's High Representative for Bosnia-Herzegovina Carlos Westendorp denied on Wednesday rumours that the international community would set up a protectorate in the former Yugoslav republic.

Westendorp told the Assembly of Bosnia-Herzegovina House of Representatives that he was against a protectorate because it was not a model which was provided for by the Dayton Agreement. He set out that the Dayton Accords gave sufficient powers to the High Representative to step up the process of the building of the state.

The international community's High Representative stressed that the process of building the state and setting up its joint institutions was very slow.

Westendorp warned that little time was left until Dec. 5, when the Steering Committee of the Peace Implementation Council will meet in Bonn and till when the process is to be stepped up.

The process must be accelerated and the international community is determined to see to it that this is done, according to the High Representative.

Westendorp urged the parliamentarians as promptly as possible to pass key laws, including a law on the Council of Ministers, a law on citizenship, and one on travel documents. He stressed that the laws must be adopted before the Bonn conference so as to have a better atmosphere at the conference.

The High Representative said that Bosnia-Herzegovina's future was in Europe, European institutions, the European Union and he called on the House of Representatives to show that it was part of Europe.

[12] PROSPECTS FOR DEVELOPING COOPERATION WITH ALGERIA

Tanjug, 1997-11-26

Yugoslav Minister of the Economy Rade Filipovic said on Wednesday that the visit of a Yugoslav state and business delegation to Algeria had been very successful and had paved the way for resuming and expanding bilateral cooperation.

The delegation, which visited Algeria at the invitation of its Minister of physical plan, met Algerian Prime Minister and representatives of eight Ministries, Filipovic told the press on his return.

Algerian Ministers have expressed their gratitude to Yugoslavia for its aid to Algeria's fight for liberation and independence, and their wish to see Yugoslavia resume its rightful place at the world market.

It was agreed during the visit that Yugoslav companies should complete all their projects in Algeria and receive payment, which would pave the way for resuming cooperation, Filipovic said.

Algerian partners have invited Yugoslav companies to take part in the construction of dams, irrigation systems and housing, Filipovic said and noted that 8,000 apartments had been built by Yugoslav companies in Algeria so far.

The Yugoslav delegation comprising the managers of ten companies proposed to Algerian partners cooperation in completing the underground network, equipping the airport building, road construction, supply of medical equipment, services of the Bar port on the Adriatic coast and equipping and overhauling of ships, Filipovic said.

The talks also focused on the avoidance of double taxation, investment protection, cooperation between the Chamber of Commerce and banks and establishment of air traffic between the two countries, the Minister said.

[13] MARJANOVIC OF SERBIA: TWO-DIGIT GDP GROWTH IN 1998

Tanjug, 1997-11-26

Serbian Prime Minister Mirko Marjanovic said in the Serbian town of Obrenovac on Wednesday that the basic goals of the 1998 economic policy were a 10-percent offensive growth of the gross domestic product (GDP), two- digit growth of industrial production, construction and trade, and a further increase of agricultural production and other activities.

"Our key option is to realize the economic growth objectives in conditions of full price and currency stability and with the fullfilment of all social tasks, primarily the due meeting of obligations toward pensioners, health and education employees, child care, and other purposes," Marjanovic said in talks with the socio-political leadership of this municipality.

"Our pubic expenditures this year will amount to about 52 percent, but we managed, even with such social and other expenditures which make up public spending, to preserve the stability of the dinar, prices, the economic and market environment," Marjanovc said.

"Even a glance at the figures on economic dynamics in the past ten years show that the turn from a negative to a positive economic trend coincides with the start of the mandate of the government of natonal unity," he said. "Since that time, Serbia's economy has been recording positive growth rates of production, expenditures and living standard. In these four years, the GDP increased from 1,250 dollars per capita in 1993 to about 1,600 dollars in 1997, according to preliminary estimates," Marjanovic said.

"The inflation rate in 1995 stood at 120 percent, but was halved already in 1996. This year, prices have become completely stable, which is an exceptional result even for much more developed countries," Marjanovic said, pointing out that inflation was a mere 3.1 percent in the first nine months this year.

Marjanovic said the Government had not resorted to interventions and interference in economic decisions in certain companies, although it had played an important role in stimulating production and other economic activities, exports in particular.

"We in the Serbian Government especially care that the transformation of social property proceeds in the legally determined and a public manner. Only such transformation can be quick, just and efficient," he said. "We are aware of the fact that the ownership transformation which we are realizing is the necessary first step in strengthening property and contracts as the basic institutions of the free market system of business operations," he said.

"We can state with full authority that our economy has well entered into restructuring, true, without financial support from abroad, which would certainly speed up that process, but we are confident that we know only too well what to expect on the other shore. We understood this process as a necessary encounter with the economic truth, and we have the knowledge, courage, and organizational abilities for that encounter," Marjanovic underscored.

We wish to take our rightfull place within world economic and political activities, taking care, as patriots, of our national and economic interests, he said.

[14] YUGOSLAV GOVERNMENT FAVOURS FIXED, REAL EXCHANGE RATE OF DINAR

Tanjug, 1997-11-26

Yugoslav Prime Minister Radoje Kontic said on Wednesday that basic goals of Yugoslavia's 1998 economic policy would be to keep stable the exchange rate of the national currency - the dinar - and prices, boost production and export, step up reform primarily in the area of privatization and increase living standards further.

Kontic was speaking at an enlarged session of the Yugoslav Chamber of Commerce Board of Managers.

He said the 1998 economic policy was based on "Yugoslav Government's strategic commitment to building an open market economy based on private ownership and with foreign trade in line with of the World Trade Organization (WTO) norms."

He said the Government was also committed to a fixed and real exchange rate of the dinar.

The policy of fixed and real rate of exchange of the dinar has confirmed itself successfully over the past few years but, in this inflation-prone conditions, it could draw very unpleasant consequences for the trust in the national currency, said Kontic. He added that "the fixed exchange rate, if at an adequate level, should also secure a balanced foreign trade position."

Once a lasting stabilization of business conditions has been achieved, fluctuating exchange rate can be considered, he said. He stressed that it is "certain that many of our products are not competitive on the domestic market and, on that grounds, prices of domestic products should be reduced."

As for price stability, authors of the economic policy fear that any plan to raise the prices would stimulate non-productive consumption and whet the appetites for inflation-generated profit and lead to index-linking prices and planned inflation, he said.

He said that a rise in retail prices in 1997 amounted to 8-10 percent, which could be considered as a "major success of the economic policy."

Kontic said that the policy of credit and money supply could yield adequate results only in cooperation with the fiscal policy, the policy of liberalizing import and export and other macroeconomic policies.

He said that the Government would pursue the fiscal policy which would reduce outlays for public spending, reduce costs of production and raise the competitiveness of Yugoslav industry.

For 1998, Kontic announced stepping up of tax system reform, introduction of value added tax (V.A.T.) and synthetic taxation and revision of customs rate and reducing duty on import of raw-materials and semi-manufactures not being produced in Yugoslavia.

Referring to the liberalization of foreign trade, Kontic said that, in 1998, only two percent of export and about 15 percent of import would remain restricted, while export and import would be fully liberalized by the end of the century.

We shall soon abolish the much compromised allotment system and replace it with a more modern quota system that is in use in industrialized countries, he said.

Kontic said that the Government planned a 10-percent growth of the GDP rate in 1998.

If the country's international position deteriorated, the planned GDP rate would be difficult to achieve, but if relations with international financial and trade institutions normalized, this rate would be considerably higher, he explained.

"Without normalization of relations with the WTO, there can be no international trade preferentials" and this is why "the Federal Government's top priority is integration of the Federal Republic of Yugoslavia into the international community," Kontic said.

He said that an especially big restriction in the functioning of the economy in 1998 would be the deficit and lack of foreign currency to purchase necessary raw materials and fuel. Therefore, he said, the Government is trying to ensure that more than one half of the domestic product increase be generated from export, which means raising this year's export results by about 30 percent. Despite this, there will remain some payments imbalance, which will necessitate some additional hard currency injections, he said.

Kontic said that the Government had drawn up a programme of measures to curb "grey economy" that is affecting the country's economic system.

He said it was necessary to reduce the percentage of public spending in the domestic product, which could not be achieved through increasing production alone, but also through revising payments from the budget and state funds.

Under the 1998 economic policy, public spending should not exceed 48.5 percent of the GDP, which is slightly less than this year, said Kontic. He added that the further reduction of up to 40 percent was planned over the next years, which is an amount that international institutions recommend to countries in transition.

[15] TWO TERRORIST ATTACKS AGAINST POLICE

Tanjug, 1997-11-26

Albanian separatists launched two terrorist attacks on the employees of the District Court in Kosovska Mitrovica and Serbian Interior Ministry members on Tuesday and Wednesday in the region of Srbica, the Serbian Interior Ministry Information Service has said. The automatic gunfire wounded two policemen. The attack caused the police to respond according to the law.

The terrorists have so far not been captured and all measures for their identification and capture are being taken, the statement said.

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